Adrian City Administrator Dane Nelson said Thursday that he will propose a 2013-14 city budget that eliminates the city’s recreation department.

Nelson said he is taking his direction from a special study session meeting Wednesday of the Adrian City Commission to discuss budget issues.

The recreation department costs the city’s general fund from $350,000 to $400,000 a year, Nelson said.

The city faces a $370,000 to $375,000 general-fund budget shortfall for the fiscal year that begins July 1.

Nelson also said he does not expect an ordinance to establish a city income tax to be approved by the city commission. That ordinance, which also would have to be approved by city voters, was introduced at the city commission meeting Feb. 4 and is scheduled for a vote at the commission meeting Monday, Feb. 18.

Adrian Mayor Greg DuMars, who was out of town and not at the special meeting Wednesday, said in a telephone interview Thursday that, based on conversations with other commissioners, he would be surprised if there is a single vote Monday for the income tax ordinance.

DuMars said there has been a lot of public sentiment against an income tax.

“We don’t think we can get an income tax passed,” DuMars said. “We’ve been deluged with emails and phone calls from business people not wanting an income tax.”

Nelson and city parks and recreation director Mark Gasche said that if the recreation department is cut:— Bohn Pool will not open this year.— Adult and youth recreation programs that would extend beyond July 1 will not start, with the exception of youth baseball and softball, at least for younger ages. The program, which has 500-plus participants, would go a couple weeks into July, Gasche said. The reprieve would be for this year only, he said. One or two other programs possibly could be spared this year, Gasche said.— After June 30, the city would no longer operate the Piotter Center, which besides being used for some city recreation programs, houses a Lenawee County Department on Aging Senior Center and Daybreak Adult Day Services. Nelson said the county would have to decide if it wants to pay more money to continue using the Piotter Center.

Elimination of the recreation department will not affect maintenance of the city’s parks, Nelson said.

“We don’t want to do it, but we’ve already cut so many people, the only way we can cut $375,000 is eliminate one whole department,” DuMars said.

Gasche said cutting the department would mean the elimination of four full-time jobs, including his, and elimination of 100 part-time and seasonal jobs.

In 2012, 6,535 people registered for recreation programs that require a sign-up, Gasche said. Participants would be double-counted if they signed up for more than one program, he said.

Total attendance at Bohn Pool was 21,622 last year, Gasche said.

Participation in programs at the senior center was 54,855 last year, and total attendance at the city’s skate park was 1,901, Gasche said.

Last year, 930 people participated in Santa at Stubnitz, and 300 participated in the city’s Easter egg hunt, Gasche said.

This summer will be the 50th anniversary of the city’s recreation department, Gasche said.

“My concern is about the services that we provide to our community,” Gasche said. Dropping the programs will “leave a huge hole,” he said.

Nelson proposes a city budget each spring and the city commission — which can amend the proposed budget — must approve it by the commission’s first meeting in May.

The city expects a $175,000 drop in property tax revenue for the upcoming fiscal year due to a continued drop in property values.

The city’s state shared revenue has declined $1.4 million in approximately the past eight years, DuMars said. City general fund spending is down 25 percent from what it was 10 years ago, Nelson said.

At the same time, city expenses, including medical benefits and pension costs, are expected to continue rising.

Even if property values start rising again and inflation is 2.5 percent a year, it would take 12 to 13 years to restore property tax revenues to previous levels because of Michigan’s Headlee Amendment, DuMars said. The amendment limits how much additional tax revenue governments can collect each year.

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